B2Gold Reports Strong Q4 2021 Total Gold Production of 304,897 Oz, Record Annual Total Gold Production of 1,047,414 Oz and 2022 Total Gold Production Guidance of 990,000 - 1,050,000 Oz

2022-01-19

TSX - Toronto Stock Exchange · Gold · Canada

Canada NewsWire

VANCOUVER, BC, January 19, 2022 /CNW/ - B2Gold Corp. (TSX: BTO) (NYSE AMERICAN: BTG) (NSX: B2G) ("B2Gold" or the "Company") is pleased to announce its total gold production and consolidated gold revenues for the fourth quarter and full-year 2021, in addition to its production and budget guidance for 2022. All dollar figures are in United States dollars unless otherwise indicated.

2021 Gold Production and Revenue Highlights

Fourth quarter total gold production of 304,897 ounces (including 16,048 ounces of attributable production from Calibre Mining Corp. ("Calibre")) and consolidated gold production of 288,849 ounces from the Company's three operating mines Fourth quarter consolidated gold revenues of $526 million on sales of 292,350 ounces at an average realized gold price of $1,800 per ounce Record quarterly gold production achieved by the Otjikoto Mine of 78,681 ounces in the fourth quarter Record annual total gold production of 1,047,414 ounces (including 59,819 ounces of attributable production from Calibre), marking the thirteenth consecutive year of record annual total gold production Consolidated 2021 gold production from the Company's three operating mines of 987,595 ounces, near the top end of its revised guidance range (of between 965,000 – 995,000 ounces) and exceeding the upper end of its original guidance range (of between 920,000 – 970,000 ounces) Annual consolidated gold revenues of $1.76 billion on sales of 981,401 ounces at an average realized gold price of $1,796 per ounce Record annual gold production achieved by both the Masbate Mine of 222,227 ounces and Otjikoto Mine of 197,573 ounces The Company's expects total consolidated cash operating costs _(see "Non-IFRS Measures") _to be within its guidance range of between $500 and $540 per ounce and total consolidated all-in sustaining costs ("AISC") _(see "Non-IFRS Measures") _to be at the upper end of its guidance range of between $870 and $910 per ounce

2022 Budget Highlights

For 2022, B2Gold remains well positioned for continued strong operational and financial performance with total gold production guidance of between 990,000 - 1,050,000 ounces (including 40,000 - 50,000 attributable ounces projected from Calibre) with total consolidated forecast cash operating costs of between $620 - $660 per ounce and total consolidated AISC of between $1,010 - $1,050 per ounce; consolidated cash operating costs per ounce and AISC per ounce are forecast to be higher than 2021 mainly due to higher budgeted prices for fuel, labour and other key consumables (attributable to the current inflationary environment), and a stronger budgeted Namibian dollar while the increase in AISC per ounce is also impacted by moderately higher planned sustaining capital expenditures Due to the timing of high-grade ore mining, consolidated gold production from the Company's three operating mines is expected to be significantly weighted to the second half of 2022; for the first half of 2022, consolidated gold production is forecast to be between 390,000 – 410,000 ounces, which is expected to increase significantly to between 560,000 – 590,000 ounces during the second half of 2022 Following a very successful year for exploration in 2021, B2Gold is planning a year of aggressive exploration in 2022 with a budget of approximately $65 million (excluding Gramalote), including a record $29 million allocated to the Company's ongoing grassroots exploration programs An updated mineral resource estimate is expected to be completed for the Cardinal zone (located within 500 metres of the current Fekola resource pit) in the first quarter of 2022 Based on current assumptions, including a gold price of $1,800 per ounce, the Company expects to generate cashflows from operating activities of approximately $625 million in 2022, expected to be significantly weighted to the second half of 2022

Gold Production

Despite the continuing challenges of the COVID-19 pandemic, B2Gold had another remarkable year of strong operational performance in 2021, with the achievement of B2Gold's thirteenth consecutive year of record annual total gold production. The Company's total gold production for 2021 was an annual record of 1,047,414 ounces (including 59,819 ounces of attributable production from Calibre) (2020 – 1,040,737 ounces), near the top end of its revised guidance range (of between 1,015,000 – 1,055,000 ounces) and exceeding the upper end of its original guidance range (of between 970,000 – 1,030,000 ounces). Consolidated gold production from the Company's three operating mines was 987,595 ounces (2020 - 995,258 ounces), near the top end of the revised guidance range (of between 965,000 – 995,000 ounces) and exceeding the upper end of the original guidance range (of between 920,000 – 970,000 ounces), with solid performances from the Company's three mines (see "Operations" section below), including both the Masbate and Otjikoto mines achieving record annual gold production in 2021. In addition, the Fekola Mine achieved another strong year in 2021, producing 567,795 ounces of gold, near the top end of its revised guidance range (of between 560,000 and 570,000 ounces) and exceeding the upper end of its original guidance range (of between 530,000 and 560,000 ounces).

The Company is currently compiling its final cash operating costs and AISC results for 2021 and will release its fourth quarter and full-year 2021 financial results after the North American markets close on Tuesday, February 22, 2022 . For full-year 2021, the Company's total consolidated cash operating costs are expected to be within its guidance range of between $500 and $540 per ounce and total consolidated AISC are expected to be at the upper end of its guidance range of between $870 and $910 per ounce. The Company is still forecasting to meet its total consolidated cost per ounce guidance ranges even in the current inflationary cost environment, reflecting how well the Company's operating mines and their management teams performed in 2021.

For 2022, B2Gold remains well positioned for continued strong operational and financial performance. The Company's total gold production is forecast to be between 990,000 - 1,050,000 ounces (including 40,000 - 50,000 attributable ounces projected from Calibre) in 2022, with total consolidated cash operating costs forecast to be between $620 - $660 per ounce and total consolidated AISC forecast to be between $1,010 - $1,050 per ounce. The Company's consolidated gold production from its three operating mines is forecast to be between 950,000 - 1,000,000 ounces in 2022, with consolidated cash operating costs forecast to be between $600 - $640 per ounce and consolidated AISC forecast to be between $1,000 - $1,040 per ounce. While the Company's 2022 production guidance does include estimated production from Cardinal, it does not include the potential upside to increase Fekola's gold production in 2022 from trucking material from the Anaconda area (comprised of the Menankoto Permit 1 and the Bantako North Permit) (see "2022 Production Outlook and Cost Guidance" section below).

The Company is monitoring the impact of sanctions on Mali announced by the Economic Community of West African States ("ECOWAS") on January 9, 2022 , including closure of borders with Mali . These sanctions were in response to Mali's interim authorities' proposal of delaying elections to December 2025 instead of the previously agreed timeline of February 2022 . Currently, the Fekola Mine continues to operate unimpeded and the Company expects to meet its 2022 production guidance for Fekola. The Fekola Mine appears well-positioned for any potential supply disruptions that might be caused by the border closures. The Company is in the search of alternative routings to bring in some critical supplies, if necessary. Fuel supplies are not affected by the sanctions and continue passing through the border with Senegal . Gold sales from the Fekola Mine are expected to continue on an ordinary course basis.

| _ | | 1 Subject to the receipt of the new Menankoto Permit which the Company expects to be issued by the Mali Ministry of Mines and Petroleum in the near future. |

Sustainability

Safety

The Company's excellent safety performance reflects the Company's longstanding commitment to continuous safety improvement and goal of sending everyone HOME-SAFE after every shift/work rotation. The Company's LTIFR and Severity rates (lost time and restricted work) are in-line with best in class (top 5%) of the safest performing mining companies globally. While the Company's TRIFR rate remained unchanged from 2020, it remains 54% lower than the International Council on Mining and Metals group average (32 companies) and rests within the top 5% of the safest performing companies within that group.

For a sixth consecutive year, the Company maintained a fatality free workplace and once again either reduced or maintained its low injury frequency rates as follows:

Lost time injury ("LTIFR"): 0.05 (16% reduction from 2020) Total recordable injury frequency rate ("TRIFR"): 0.27 (0% neutral from 2020) Severity: 3.46 (2% reduction from 2020)

Other notable safety performance highlights from 2021 include:

Masbate operations surpassing 3 years and +20 million LTI free hours worked Otjikoto operations reducing TRIFR by 25% Exploration/Projects reducing LTIFR by 52%, TRIFR by 85% and Severity by 88% Continued successful management of COVID-19 through screening/testing and vaccination Zero occupational hygiene claims (illness/diseases) for a third consecutive year No fines or orders for non-compliance/violations of health and safety regulations for a fifth consecutive year Third-party OHS Performance Standards Audits conducted at both Fekola and Otjikoto operations, with improvements reported

In 2022, the Company will continue to focus attention on key prevention initiatives to further reduce injury to align with its goal of sending every B2Gold employee or contractor HOME-SAFE after each and every shift/work rotation.

Environmental, Social and Governance Commitment

B2Gold is committed to delivering positive impacts in environmental, social and governance ("ESG") with its many stakeholders. In 2021, as a result of the Company's culture of health and safety and support for the communities where it operates, B2Gold was able to successfully respond to the challenges posed by COVID-19, contributing to community resilience and sustained positive economic impacts in the countries where it operates. As vaccines became available, B2Gold worked with authorities to implement vaccination clinics all operations. Vaccinations, combined with ongoing workforce monitoring and testing measures, and continued modified work protocols including revised workplace schedules and arrangements, social distancing, and mask and hygiene policies, ensured the ongoing health and safety of our workforce and communities.

In addition to community investment and development initiatives that B2Gold supports across its global operations, the Company also supports social initiatives at home, in Canada . This is managed through the B2Gold Canadian CSR Fund established in 2019. This fund supports registered charities in the Metro Vancouver area that address social issues related to health, children, and vulnerable populations. In 2021, the Company donated CAD$1 million to organizations that align with these priorities, including CAD$100,000 to the Red Cross to support those affected by the British Columbia floods.

In 2021, B2Gold joined the World Gold Council ("WGC"), the global authority on the gold market comprised of the world's leading gold mining companies. B2Gold is in the first year of implementation of the WGC's Responsible Gold Mining Principles, a comprehensive framework that addresses key environmental, social and governance issues for the gold mining sector.

More information on B2Gold's ESG management and performance, as well as its safety performance and economic contributions across its operations can be found on the Company's website and in its annual responsible mining report, "Raising the Bar" .

Gold Revenue

For full-year 2021, consolidated gold revenue was $1.76 billion on sales of 981,401 ounces at an average realized gold price of $1,796 per ounce, compared to $1.79 billion on sales of 1,006,455 ounces at an average realized gold price of $1,777 per ounce in 2020. The slight decrease in gold revenue of 1% ( $0.03 billion ) was 2% attributable to the decrease in gold ounces sold, partially offset by a 1% impact from the increase in the average realized gold price.

For the fourth quarter of 2021, consolidated gold revenue was $526 million on sales of 292,350 ounces at an average realized gold price of $1,800 per ounce, compared to $480 million on sales of 256,655 ounces at an average realized gold price of $1,868 per ounce in the fourth quarter of 2020. The increase in gold revenue of 10% ( $46 million ) was 14% attributable to the increase in gold ounces sold (mainly due to the higher gold production), partially offset by a 4% impact from the decrease in the average realized gold price.

Operations

Mine-by-mine gold production in the fourth quarter and full-year 2021 (including the Company's estimated 33% share of Calibre's production) was as follows:

| Mine | Q4 2021 Gold Production (ounces) | Full-Year 2021 Gold Production (ounces) | Revised Full-Year 2021 Guidance Gold Production (ounces) | Original Full-Year 2021 Guidance Gold Production (ounces) | | Fekola | 163,539 | 567,795 | 560,000 - 570,000 | 530,000 - 560,000 | | Masbate | 46,629 | 222,227 | 215,000 - 225,000 | 200,000 - 210,000 | | Otjikoto | 78,681 | 197,573 | 190,000 - 200,000 | 190,000 - 200,000 | | B2Gold Consolidated (1) | 288,849 | 987,595 | 965,000 - 995,000 | 920,000 - 970,000 | | | | | | | | Equity interest in Calibre (2) | 16,048 | 59,819 | 50,000 - 60,000 | 50,000 - 60,000 | | | | | | | | Total | 304,897 | 1,047,414 | 1,015,000 - 1,055,000 | 970,000 - 1,030,000 |

| | | | (1) | "B2Gold Consolidated" - gold production is presented on a 100% basis, as B2Gold fully consolidates the results of its Fekola, Masbate and Otjikoto mines in its consolidated financial statements (even though it does not own 100% of these operations). | | (2) | "Equity interest in Calibre" – For 2021, represents the Company's approximate 33% indirect share of the operations of Calibre's El Limon and La Libertad mines in Nicaragua. On January 12, 2022, the Company's ownership interest in Calibre was diluted to 25% from 33%, as a result of Calibre's acquisition of Fiore Gold Ltd. B2Gold applies the equity method of accounting for its ownership interest in Calibre. |

Fekola Gold Mine – Mali

The Fekola Mine in Mali achieved another strong year in 2021, producing 567,795 ounces of gold, near the top end of its revised guidance range (of between 560,000 and 570,000 ounces) and exceeding the upper end of its original guidance range (of between 530,000 and 560,000 ounces), due to significantly higher than budgeted mill throughput, partially offset by lower processed grade, as Fekola's low-grade stockpiles were used to supplement the additional unbudgeted mill feed required as a result of the significantly higher than budgeted processed tonnes. As expected, compared to the previous year of 2020, gold production was lower by 9% (54,723 ounces) as a result of the higher planned pre-stripping and lower mined ore grades in the first half of 2021, as Phases 5 and 6 of the Fekola Pit were developed. In the fourth quarter of 2021, the Fekola Mine produced 163,539 ounces of gold, 2% above budget (3,539 ounces), and 3% (4,991 ounces) higher compared to the fourth quarter of 2020, mainly due to the higher mill throughput. In September 2021 , the Fekola Mine produced its 2 millionth ounce of gold, 4 years from the commencement of production.

For full-year 2021, mill feed grade was 2.05 grams per tonne ("g/t") compared to budget of 2.32 g/t and 2.99 g/t in 2020; mill throughput was 9.14 million tonnes compared to budget of 7.75 million tonnes and 6.87 million tonnes in 2020; and gold recovery averaged 94.2% compared to budget of 94.0% and 94.3% in 2020. Throughout 2021, Fekola's processing facilities continued to significantly outperform (following the successful completion of the Fekola mill expansion in September 2020 ) resulting in record annual throughput of 9.14 million tonnes for 2021, 18% above budget and 33% higher than 2020, and record quarterly throughput of 2.41 million tonnes in the fourth quarter of 2021, 23% above budget and 20% higher than the fourth quarter of 2020. The higher than budgeted mill throughput for 2021 was due to favourable ore fragmentation and hardness, as well as optimization of the grinding circuit. Based on the positive results noted throughout 2021, Fekola's annualized throughput rate is now expected to average approximately 9.0 million tonnes per annum ("Mtpa") (over the long-term), based on an ore blend including fresh rock and weathered material (saprolite).

With the Fekola solar plant now 100% online (following the successful completion of the solar plant construction early in the second quarter of 2021), it is expected to reduce Fekola's Heavy Fuel Oil ("HFO") consumption by over 13 million litres per year and lower carbon dioxide emissions by an estimated 39,000 tonnes per year. Fekola's solar power production to date indicates that the plant has the capacity to exceed initial power production estimates.

After review of an Environmental and Social Impact Assessment by the Malian authorities, the existing Medinandi (Fekola) permit has been updated to include the Cardinal zone, located within 500 metres of the current Fekola resource pit (the initial Inferred Mineral Resource estimate for Cardinal is 640,000 ounces of gold in 13.0 million tonnes of ore at 1.54 g/t gold). Exploration drilling at Cardinal is ongoing and recent drill results have returned good gold grades over significant widths below the current resource which remains open at depth and along strike. Initial mining operations at Cardinal have commenced and will continue to ramp up. To December 31, 2021 , 164,340 tonnes at an average grade of 1.66 g/t have been mined at Cardinal. The Company is in the process of updating the Fekola Mine Plan to include production from Cardinal which has the potential to add an average of approximately 60,000 ounces per year over the next 6 to 8 years (based on Cardinal's inferred resource only) to Fekola's annual gold production. Approximately 50,000 ounces is budgeted to be produced from the Cardinal zone in 2022 (these ounces are in the indicated mineral resource category and have been included in Fekola's 2022 annual production guidance). An updated mineral resource estimate is expected to be completed for the Cardinal zone in the first quarter of 2022.

For full-year 2021, Fekola's cash operating costs are expected to be at the upper end of the guidance range of between $405 and $445 per ounce and AISC are expected to be at the upper end of the guidance range of between $745 and $785 per ounce.

Menankoto Permit

B2Gold has reached an agreement in principle with the State of Mali in connection with the issuance of the Menankoto exploration permit (the "Menankoto Permit"). The Government of Mali has recently announced that it will grant a new exploration permit covering the same perimeter as the Menankoto Permit to a new Malian subsidiary of B2Gold. On December 28, 2021 , the Government of Mali entered into a new mining convention with B2Gold's Malian subsidiary in respect of a new exploration permit covering the same perimeter as the Menankoto Permit. In addition, B2Gold has initiated the withdrawal of the arbitration proceedings that its Malian subsidiary, Menankoto SARL ("Menankoto"), commenced in June 2021 against the Republic of Mali under the Convention on the Settlement of Investment Disputes Between States and Nationals of Other States.

B2Gold expects that the new Menankoto Permit will be issued to its new Malian subsidiary shortly in compliance with the procedures and requirements set out under the Malian 2019 Mining Code (previous permit had been issued under the Malian 2012 Mining Code), which provides for an initial term of three years and renewable for 2 additional three year periods. The Company and the State of Mali are both pleased with this outcome and the process to reach this agreement, which was conducted in a fair and transparent manner and restores the Company's interest in the Menankoto Permit that it believes Menankoto was entitled to under its original extension application. Upon issuance of the new Menankoto Permit, the Company intends to resume its aggressive exploration drilling program on the Menankoto Permit area.